30th Jan 2020 10:58
(Alliance News) - Keywords Studios PLC on Thursday said it expects a full-year revenue climb of roughly 30% despite noticing a slowdown ahead of the upcoming launches of the next generation of video game consoles.
The video games services firm said it expects revenue of about EUR326 million in 2019, up from EUR250.8 million the prior year.
On an organic basis, revenue is to rise about 15% year-on-year, Keywords said.
Adjusted pretax profit is expected to rise 8.2% to about EUR41 million from EUR37.9 million in 2018.
Adjusted earnings before interest, tax, depreciation and amortisation are tipped to rise 13% to about EUR49.5 million from EUR43.7 million.
The adjusted Ebitda figure excludes the impact on IRFS 16, an accounting standard, governing the financial treatment of leases.
Keywords said its testing and video game development arms built on a "very strong" first half.
The company also explained it has noticed a decline in some of its service lines, with eyes now turning to the next generation of hardware, set to be released later in 2020. Other divisions have benefitted from this, Keywords said.
Keywords explained: "Some of our service lines felt the effects of the slowing development cycle of the current generation of games consoles, with others already starting to benefit from the new development cycle."
This year, Microsoft Corp's Xbox and Sony Corp's Playstation are pencilled in to release their latest consoles, following the Xbox One and Playstation 4 range, respectively.
Chief Executive Andrew Day said: "In what was a relatively light year for the video games industry against a backdrop of the tail end of the current generation of video games consoles from Microsoft and Sony, the group has delivered strong growth, particularly from our two largest divisions, Functional Testing and Game Development services."
The company will release its full-year results on March 31.
Keywords shares were 5.4% lower at 1,296.00 pence each in London on Thursday morning.
By Eric Cunha; [email protected]
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